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Zoom Initiated With Buy at Citic On Excessive Concerns -Breaking

by Mike Robinson

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Sam Boughedda

Investing.com — Zoom Video Communications Inc (NASDAQ:) shares rose more than 5% Thursday after Citic analyst Junyun Chen initiated coverage of the stock with a buy rating and $260 price target.

An analyst pointed out the 43% decline in share prices for the current year. Chen explained that concern about the stock was triggered by the decline in revenue growth, loss of small and mid-sized customers (SMB), Microsoft’s (NASDAQ: Teams) and many other factors. 

Chen investors noted in a survey that current market worries are “clearly excessive.” After being oversold Zoom’s long-term and medium-term investment value gradually began to manifest.

Citic’s analyst explained three reasons why Zoom was rated a buy, which included the existing global market for video conferencing, company support of core video products and an increase in overseas expansion.

“Considering Zoom’s expected revenue growth of close to 20% and an operating profit margin of over 30%, we assign 16x FY2023 EPS,” explained  Chen.

 

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